Microchip Scoops Up Supertex for $394M

Microchip Technology (MCHP) inked a deal on Monday to buy Supertex (SUPX) for about $394 million, or $33 a share, as it looks to expand its footprint in the medical, industrial and lighting markets.

Supertex makes high-voltage analog and mixed signal chips for the medical, LED lighting, display, industrial and telecom industries. The transaction values it at $246 million excluding $148 million worth of cash and investments on its portfolio.

The all-cash purchase price represents a premium of 35% to Supertex’s closing stock price on Friday. Its shares were up 35.3% to a multi-year high of $32.97 in recent trade.

“We believe that combining Supertex’s business with Microchip’s Analog business will enable significant synergies and cross selling opportunities," Microchip CEO Steve Sanghi said in a statement.

The transaction has been unanimously approved by both boards of directors and is expected to close in the second quarter pending regulatory and shareholder approval and other customary closing conditions.

Microchip, whose shares rose .054% to $44.68 in recent trade, says it expects the acquisition to be accretive to non-GAAP earnings in the third quarter.